$150m (22.5m) 144a senior cb overnight from MS. Terms: 5yr bullet, 5.75% up 17.5%, dvd prot > 28c per qtr. UOP = repay credit facility & gcp refooered 98-98.5. Shall we just cut & paste ARCC color? A closed end mgmt co. BBB rated. $2.2B mkt cap. Cash = 26m, debt = 1.4B, $880m available on revolver. New L+300 sec bank line in 2010. Appears to be less sub debt, more liquid portfolio than ARCC. But use same inputs (500/20), taking stock down to $11.50 (19.50% premo) = 99.5. Again it feels like the CB mkt is patsy of the cap structure. For the same reasons we thought ARCC would do well over time (high cpn/bond flr/IG trifecta) we feel same here. We think another investment. Dont pay more than 98
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